The concept of shareholdervaluemaximization focuses on maximizing the value of equity.But in a finance balance sheet, we
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Question:
- The concept of shareholdervaluemaximization focuses on maximizing the value of equity.But in a finance balance sheet, we can see that thisis not quite the same as maximizing the value offirm? Why?
- How will increasing the risk of the firm affect the value of liabilities? the value of equity? the value of the firm?
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